By Anthony O. Goriainoff

 

Ukrproduct Group Ltd. said Friday that its 2020 pretax loss narrowed as revenue rose, and that it plans to pursue stronger margins and further increase sales of processed cheese and spreads.

The London-listed Ukrainian producer and distributor of branded dairy foods and beverages said that management is in discussions with the European Bank for Reconstruction and Development regarding the nonrepayment of its quarterly loan tranche due June 1.

On that date, Ukrproduct entered into discussions with the EBRD to restructure its loan repayment schedule as a result of the company's pressure on working-capital requirements stemming from increased raw-milk costs and the volumes increase required to meet demand.

Ukrproduct said it was looking to increase its working-capital facility provided locally in Ukraine.

The company said that pretax loss was 1.2 million pounds ($1.7 million), compared with a loss of GBP2 million for 2019.

Profit from operations--a key metric for the company--fell to GBP838,000 from GBP1.5 million.

Revenue rose to GBP55.5 million from GBP50 million. The company said this was a result of a revision of its sales strategy, with spreads and processed-cheese sales showing the most pronounced increases.

"Whilst Covid-19 creates significant economic uncertainty, Ukrproduct expects to utilize its experience gained during the pandemic, most notably from remote working, to streamline and optimize certain administrative and operational processes," the company said.

 

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

 

(END) Dow Jones Newswires

June 25, 2021 03:44 ET (07:44 GMT)

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